$20M sale of Pennsylvania MMJ grower, permit is suspended

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A Pennsylvania marijuana cultivation business that had put itself on the block for $20 million has pulled the plug on the sale after the state’s governor threatened to revoke the company’s coveted new license.

Franklin Labs, which was put up for sale this year after winning one of 12 MMJ licenses, is led by John Hanger, a former adviser to Pennsylvania Gov. Tom Wolf.

In a letter, the director of the state Office of Medical Marijuana called the sale proposal “disturbing,” and on Monday Franklin Labs “took the offer off the table,” the Philadelphia Inquirer reported.

The company instead said that it had proposed to sell 100% of the stock of the company, and had included the permit as an asset, but that the company itself was never for sale, the Inquirer reported.

The proposal, however, was rescinded once the state MMJ director slapped the company on the wrist and demanded copies of all the sales prospectuses Franklin Labs has, along with other materials such as all possible buyers.

None of the Pennsylvania MMJ permits awarded to companies may be sold or transferred without state approval.

By law, all 12 MMJ cultivators must be operational by Christmas week.